V E N T U R E C A P I T A L R E P O R T

Venture Capital Report Europe | 4Q | 2016

V E N T U R E C A P I T A L R E P O R T

VENTURE CAPITAL REPORT

The following report presents Dow Jones VentureSource’s quarterly findings for European venture capital fundraising, investment, valuation,

and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market.

Highlights for 4Q 2016 include: 

•  European venture capital fundraising increased slightly both compared to the prior quarter and to the same quarter in 2015;

•  Venture capital investment into European companies increased significantly from 3Q 2016;

•  The number of mergers and acquisitions (M&As) was one deal lower, but the total amount raised in M&As increased from the previous quarter;

•  While the number of initial public offerings (IPOs) increased slightly, the total amount raised decreased noticeably from 3Q 2016.

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EUROPEAN VENTURE CAPITAL FUNDRAISING REBOUNDS IN 4Q 2016

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FUNDRAISING

European VC Fundraising Based on multiple closings (2013–2016) 19 European venture capital funds raised

€1.60 billion during 4Q 2016. Compared with 3Q 2016, total

capital raised experienced a slight increase, while the

number of fund closings decreased by 21%.

•  Compared with the same quarter last year, euros raised

remained stable, while the number of fund closings

decreased by 17%.

•  Scottish Equity Partners LLP’s SEP V fund, which raised

€307 million, was the largest fund of the quarter,

accounting for 19% of the total amount raised in 4Q 2016.

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

Amount Raised (€B) € 2.74 € 1.09 € 1.73 € 1.10 € 1.97 € 1.37 € 2.14 € 1.33 € 1.54 € 2.79 € 2.71 € 1.42 € 1.60

Number of Funds 46 25 24 20 29 24 26 17 23 25 24 24 19

€ 2.74

€ 1.09

€ 1.73

€ 1.10

€ 1.97

€ 1.37

€ 2.14

€ 1.33

€ 1.54

€ 2.79 € 2.71

€ 1.42 € 1.60

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LARGEST EUROPEAN VC FUNDS RAISED IN 4Q 2016

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FUNDRAISING

Firm Name Fund Name Amount (€M) Location Offering Status

Fund Type Fund Category Closing Type

Scottish Equity Partners LLP SEP V € 307.06 Glasgow,

United Kingdom Closed

Multi-stage venture capital

Venture Capital Final

Alven Capital SA Alven Capital V € 250.00 Paris, France Closed Multi-stage venture

capital Venture Capital Final

Statoil ASA Statoil Energy Ventures € 186.25 Stavanger, Norway Closed Multi-stage venture

capital Venture Capital

Final

daphni SAS Daphni Purple € 150.00 Paris, France Closed Early-stage venture

capital Venture Capital

Final

Abingworth Management Inc. Abingworth Bioventures VII LP €109.08 London, United Kingdom Open Multi-stage venture

capital Venture Capital First

V E N T U R E C A P I T A L R E P O R T

INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES INCREASED IN 4Q 2016

European companies raised approximately €2.93 billion from 539

deals in 4Q 2016, a 35% increase in the amount raised as well as a

9% rise in the number of deals when compared to the previous

quarter.

•  Compared with the same period last year, the amount

companies raised decreased by 16%, whereas the number of

deals grew by 1%.

•  Information Technology, netting €866.41 million, was the

strongest sector of the quarter in terms of amount raised,

while Business and Financial Services, with 143 transactions,

completed the largest number of deals.

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FINANCING Equity Financings into Europe-based,

VC-backed Companies (2013–2016)

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

Amount Raised (€B) € 2.03 € 1.55 € 2.43 € 2.37 € 2.11 € 2.86 € 3.99 € 3.50 € 3.48 € 2.65 € 3.20 € 2.17 € 2.93

Number of Deals 530 433 471 385 453 459 468 432 535 473 527 494 539

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2013–2016) – NUMBER OF DEALS

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FINANCING

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

Seed 82 45 38 34 46 34 50 38 45 45 30 36 40

First 238 229 235 191 221 231 201 209 274 221 273 242 234

Second 92 64 94 67 76 81 80 83 96 101 96 100 106

Later 80 61 78 62 61 80 106 78 78 85 91 73 88

Restart 0 0 0 1 0 0 1 0 0 0 1 0 1

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2013–2016) – AMOUNT RAISED (€M)

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FINANCING

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

Seed € 32 € 25 € 24 € 17 € 32 € 31 € 39 € 31 € 35 € 39 € 22 € 47 € 47

First € 515 € 483 € 621 € 495 € 482 € 636 € 575 € 939 € 782 € 730 € 894 € 665 € 1,037

Second € 432 € 307 € 479 € 223 € 773 € 442 € 921 € 609 € 603 € 771 € 660 € 444 € 533

Later € 986 € 696 € 1,124 € 902 € 780 € 1,682 € 2,289 € 1,874 € 1,604 € 1,076 € 1,572 € 902 € 1,178

Restart € 0 € 0 € 0 € 1 € 0 € 0 € 1 € 0 € 0 € 0 € 2 € 0 € 1

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (2013–2016) – MEDIAN EQUITY DEAL SIZE (€M)

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FINANCING

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

Median Equity Deal Size (€M) € 1.31 € 1.45 € 1.70 € 1.55 € 1.88 € 1.80 € 2.09 € 2.10 € 2.00 € 2.09 € 2.00 € 2.00 € 2.50

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (4Q 2016)

Information Technology received the largest allocation of investment during 4Q

2016, raising €866.41 million through 135 deals. The sector attracted 30% of the

total amount invested and a 25% share of all deals completed in the quarter.

Healthcare ranked second in terms of euros invested. The sector garnered

€745.97 million across 81 deals. This deal flow represented 15% of all transactions

and 25% of the total amount invested into European VC-backed companies for

the quarter.

Business and Financial Services placed third, receiving €567.80 million via 143

deals. The sector’s investment figure represents 19% of the total equity financing

into European VC-backed companies for 4Q 2016.

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FINANCING 4Q'16 Industry Breakdown By Number of Deals

4Q’16 Industry Breakdown By Amount Raised

27%

4%

24% 3%

15%

1%

25%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

19%

3%

16%

5%

25%

2%

30%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

V E N T U R E C A P I T A L R E P O R T

TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (4Q 2016)

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Co. Name Location Industry

Code Industry Segment

Industry Group

Brief Description

Close Date

Round Type

Raised (€M)

Round Investors (* denotes lead)

Sigfox SA Labège, France

Wireless Communications

Equipment

Communications and Networking

Information Technology

Operator of a cellular network. 18/11/2016 5th € 150.00

Air Liquide, Alto Invest, Bpifrance Investissement SAS, Elliott Associates LP, Idinvest Partners,

Individual Investor(s), Intel Capital, iXO Private Equity SAS, Salesforce Ventures, SWEN Capital

Partners, Tamer Group, Total SA

Oxford Nanopore

Technologies Ltd.

Oxford, United Kingdom

Drug Development Technologies

Biopharmaceuticals Healthcare Provider of nanopore technology. 12/12/2016 Later € 118.28 GT Healthcare*, IP Group PLC, Woodford

Investment Management LLP*

Devialet SA Paris,

France Consumer Electronics

Electronics and Computer Hardware

Information Technology

Provider of high-end amplifiers and sound amplification

technology. 29/11/2016 First Round € 100.00

Bpifrance Investissement SAS, CM-CIC Investissement, Foxconn Technology Group,

Future French Champions, Ginko Ventures Sarl*, Korleya Capital, Playground Global LLC, Renault

SA, Roc Nation LLC, Sharp Corp.

Kymab Ltd. Cambridge,

United Kingdom

Biotechnology Therapeutics

Biopharmaceuticals Healthcare Developer of human monoclonal

antibody therapeutics. 24/11/2016 4th € 94.43

Bill & Melinda Gates Foundation, Malin Corporation plc, ORI Capital Investment Advisory (Hong Kong)

Ltd.*, Shenzhen Hepalink Pharmaceutical Co. Ltd., Wellcome Trust Ltd., Woodford Investment

Management LLP

HelloFresh SE Berlin,

Germany Restaurants / Food Service

Travel and Leisure Consumer Services Provider of meal kit delivery

services. 20/12/2016 7th € 85.00 Baillie Gifford & Co. Ltd.

FINANCING

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MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (4Q 2016) BY DEALS COMPLETED

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FINANCING

13

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High-Tech Gruenderfonds

Management GmbH

Bpifrance Investissement SAS

Enterprise Ireland Localglobe LLP Sunstone Capital A/S ALMI Invest AB Internet Initiatives Development Fund

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (4Q 2016)

The United Kingdom remained the most favoured destination for equity

financing during 4Q 2016, receiving €754.73 million across 122 deals. The

country attracted 23% of all equity financing in 4Q 2016.

France, ranked second, raised €603.15 million through 62 deals. With a 96%

increase in capital invested and a 17% drop in the number of deals from last

quarter, France garnered a 21% share of all European financing in 4Q 2016.

Germany occupied third position raising €525.06 million, or 18% of the total

amount raised for the quarter. Ireland placed fourth based on raising €220.83

million during 4Q 2016.

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FINANCING Number of Deals in 4Q 2016 by Country (Top 4)

Amount Raised in 4Q 2016 by Country (Top 4)

23%

19%

23%

14%

12% 11%

40%

United Kingdom

Germany

Sweden

France

Rest of Europe

26%

21%

18%

7%

28%

United Kingdom

France

Germany

Ireland

Rest of Europe

V E N T U R E C A P I T A L R E P O R T

EUROPE 4Q 2016 VENTURE EXIT ACTIVITY

60 venture-backed M&As took place in Europe

during 4Q 2016, a 2% decrease from 3Q 2016. However,

the number of exits is 58% higher than that of 4Q 2015.

The total amount raised through European VC-backed

M&As in 4Q 2016 was €4.31 billion. This represents an

11% increase from the previous quarter and a 28%

decrease from the same quarter last year.

15 venture-backed IPOs took place during 4Q 2016, a

15% rise from 3Q 2016 but a 12% drop from last year, 4Q

2015.

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LIQUIDITY

Exit Opportunities for European VC–backed Companies (2013–2016)

0 10 20 30 40 50 60 70

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

IPOs 9 9 22 16 10 12 17 8 17 6 10 13 15

M&As 44 56 44 51 52 56 44 48 38 53 57 61 60

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TOP 3 M&As IN EUROPE (4Q 2016)

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Company Name Location Brief

Description Industry

Code Industry Segment Industry Group

Close Date

Round Type

Amount Paid (€M)

Acquirer

Skyscanner Ltd. Edinburgh,

United Kingdom Provider of an online flight search

engine. Search Portals

Consumer Information Services

Consumer Services 09/12/2016 Acquisition € 1,655.86 Ctrip.com

Ganymed Pharmaceuticals

AG Mainz, Germany

Provider of Ideal Monoclonal Antibody (IMAB) therapeutics for

solid cancers and infectious diseases.

Biotechnology Therapeutics

Biopharmaceuticals Healthcare 20/12/2016 Acquisition € 422.00 Astellas Pharma Inc.

Banca ITB SpA Milan, Italy

Provider of banking services dedicated to Italian

tobacconists.

Personal / Commercial Banking

Financial Institutions and Services

Business and Financial Services

19/12/2016 Acquisition € 153.00 Intesa Sanpaolo SpA

LIQUIDITY

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EUROPEAN VC-BACKED IPOs (2013-2016)

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LIQUIDITY

The number of IPOs during 4Q 2016 increased slightly in

comparison to the prior quarter, whereas the amount raised

decreased significantly.

15 venture-backed companies went public during 4Q 2016, a

15% increase from the prior quarter.

IPOs raised €193.86 million during 4Q 2016, a drop of 60%

from the €483.22 million raised in 3Q 2016.

The largest European VC-backed IPO of 4Q 2016 was Crispr Therapeutics AG. The company raised €49.82

million for its offering on NASDAQ.

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

Raised (€M) through IPO € 366.10 € 691.24 € 542.15 € 447.47 € 2,249.97 € 417.40 € 576.70 € 699.69 € 612.93 € 130.08 € 184.48 € 483.22 € 193.86

Number of IPOs 9 9 22 16 10 12 17 8 17 6 10 13 15

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TOP 3 IPOs IN EUROPE (4Q 2016)

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LIQUIDITY

Company Name Location Brief

Description Industry

Code Industry Segment Industry Group

Close Date

Raised through IPO (€M)

Exchange/ Symbol

Crispr Therapeutics AG

Switzerland Developer of genome-editing

technologies for the treatment of serious human genetic diseases.

Biotechnology Therapeutics

Biopharmaceuticals Healthcare 19/10/2016 € 49.82 NASDAQ: CRSP

Alligator Bioscience AB

Sweden Developer of antibody-based drugs

for immunotherapy of cancer.

Biotechnology Therapeutics

Biopharmaceuticals Healthcare 23/11/2016 € 35.81 OMX : ATORX

InDex Pharmaceuticals

Holding AB Sweden

Developer of pharmaceuticals to treat immunological diseases.

Biotechnology Therapeutics

Biopharmaceuticals Healthcare 11/10/2016 € 25.95 NASDAQ: INDEX

V E N T U R E C A P I T A L R E P O R T

ABOUT US & METHODOLOGY

Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service providers find deal and

partnership opportunities, perform comprehensive due diligence and examine trends in venture capital investment, fund-raising and liquidity. It provides

accurate, comprehensive data on venture-backed companies – including their investors and executives – in every region, industry and stage of

development throughout the world.

The investment figures included in this report cover venture backed companies headquartered in Europe, and are based on aggregate findings of Dow

Jones’ proprietary research for VentureSource.

This data was collected through surveys of professional firms, interviews with company executives, and from secondary sources. To be included,

companies have to receive financing from a venture capital or private equity firm. Our figures do not include companies that have received funding solely

from individual, corporate and/or government investors. The data in this report only accounts for equity funding, not convertible debt deals.

Figures contained throughout the report are current at time of editorial but subject to change without notice. No statement herein is to be construed as a

recommendation to buy or sell securities or to provide investment advice.

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